An exchange-traded fund (ETF) is a type of investment fund whose shares trade on a stock exchange — just like individual stocks — throughout the trading day. Most ETFs passively track an index (such as the EGX30 or EGX100) and aim to replicate its performance. This means low management fees compared to actively managed funds.
ETF investors benefit from instant diversification: buying one ETF share gives you exposure to all the companies in the underlying index. ETFs can be bought and sold in real time through a brokerage account, unlike mutual funds which are priced once daily.